The Bank of Thailand emphasizes five key risk factors as follow:
1) Strategic Risk defines as the risk occurring from the assigned strategic plan, operation plan and improper implementation or inharmonious of internal and external environmental factors affected income, monetary fund or the business operation.
2) Market Risk defines as the risk occurring from fluctuation of interest rates, foreign currencies exchange and price index of money market that negatively affected business profit and monetary fund.
3) Liquidity Risk defines as the risk arisen from debts and obligations because of lacking of cash in flow and circulated capital.
4) Credit Risk defines as the risk arisen from probability of cannot perform the agreed provisions, including the chance that the parties’ credit risk is degraded. Consequently, it causes the organization unexpected expenses on possible non-performing debts, which decreases business profit and monetary fund.
5) Operational Risk defines as the risk from operational lost possibly occurring from improper work process or lacking of business supervision, including the effects on business profits and the organizational monetary fund. This operation risk covers the legal compliance risk.
